Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Commodities  >  WTI       

Mes dernières consult.
Most popular
News SummaryAll newsTweets

Global Stocks Stall as Yields, Oil Reach New Heights

share with twitter share with LinkedIn share with facebook
share via e-mail
05/17/2018 | 06:58am CEST

By Riva Gold
-- Brent crude hits $80 a barrel
-- Treasury yields up from near seven-year high
-- Italian assets remain under pressure

Global stocks mostly struggled for traction Thursday as government bond yields and oil prices climbed to multiyear highs.

Futures pointed to a 0.2% opening loss for the S&P 500, with shares of Cisco Systems among the biggest decliners in U.S. premarket trading after the company offered disappointing guidance for the current quarter.

Stocks in Hong Kong and Australia closed lower, while the Stoxx Europe 600 edged up 0.2% in the early afternoon as shares of Ocado Group jumped 57% after the U.K. online supermarket said that it has agreed to sell a 5% stake to Kroger and that it would provide its delivery technology to the U.S. grocer.

Energy companies were a bright spot thanks to a rise in oil prices, with shares of Royal Dutch Shell, Total and Repsol each up around 1%. Brent crude oil rose 0.9% to $80 a barrel on Thursday -- a 3 1/2 -year high -- in the aftermath of Washington's decision to reinstate sanctions on Iran.

Rising commodity prices have contributed to higher inflation expectations and thereby pressured the bond market. Yields on 10-year Treasurys rose Thursday to 3.112% from 3.093% late Wednesday, which was the highest settlement since 2011.

Some investors worry that higher yields and higher interest rates could hurt stocks by raising borrowing costs for companies and making bonds look more attractive in comparison.

"We think 3.25% would be the number that would cause us to lean a little bit more forward in our chair," said Eric Freedman, chief investment officer at U.S. Bank Wealth Management. Already, more attractive yields on shorter-dated U.S. debt have prompted U.S. Bank to shift some of its investments out of the stock market and into short-term paper, he said.

Italian bonds also remained pressure Thursday, with 10-year yields climbing to 2.129% from 2.110% late Wednesday afternoon.

Political uncertainty has shaken Italian assets, hitting the country's stocks and bonds following media reports of a draft government program that proposed the introduction of procedures within the eurozone to allow countries to quit the euro.

The 5 Star Movement and League said Wednesday that more recent discussions didn't put Italy's membership in the common currency into question.

"If 5 Star are able to take forward their program, it does bring questions about the future of the euro in its current format," said Paul Markham, a portfolio manager at Newton Investment Management. But they may not be able to do so, he added, and "I think the repurchasing firepower of the European Central Bank will be used as a safety net for Italy," he said.

Italy's benchmark FTSE MIB Index on Thursday alternated between gains and losses. The index was last up 0.2% after shedding 2.3% on Wednesday.

Earlier, Japan's Nikkei rose 0.5%, supported by a recent decline the yen, which tends to boost earnings of multinationals translating earnings from abroad. The dollar was last up 0.3% against the yen for the day and up 1.3% against the Japanese currency for the week.

Shares elsewhere in Asia mostly ended the day lower. Hong Kong's Hang Seng fell 0.5% despite a rebound in shares of Tencent Holdings, Asia's most valuable company. Shares of the Chinese tech giant rose 3.7% after its quarterly results beat expectations with a 61% increase in net profit.

Joanne Chiu and Maryam Cockar contributed to this article.

Write to Riva Gold at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL -0.30% 24811.76 Delayed Quote.1.19%
HANG SENG 0.06% 30757.8 Real-time Quote.3.86%
MILAAN-FTSE/MIB 0.22% 22483.6 End-of-day quote.2.67%
NASDAQ 100 -0.06% 6949.6986 Delayed Quote.7.35%
NASDAQ COMP. -0.02% 7424.4287 Delayed Quote.6.53%
NIKKEI 225 0.06% 22450.79 Real-time Quote.0.73%
S&P 500 -0.20% 2727.76 Real-time Quote.1.47%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on WTI
06:34aOil Prices Remain Capped by Potential of Higher OPEC Output
06:16aNEWS HIGHLIGHTS : Top Energy News of the Day
04:42aPETROLEO BRASILEIRO PETROBRAS : Brazil Truck Strike Enters Fourth Day -- Update
05/24Total Doubles Down on Arctic LNG
05/24Judge Demands More Information from Oil Companies in Climate-Change Suits
05/24Oil Slips as Investors See Easing to OPEC Output Cut
05/24NEWS HIGHLIGHTS : Top Energy News of the Day
05/24PETROLEO BRASILEIRO PETROBRAS : Brazil Truck Strike Enters Fourth Day -- Update
05/24Oil Slips as Investors See Easing to OPEC Output Cut
05/24NEWS HIGHLIGHTS : Top Energy News of the Day
More news
Chart WTI
Duration : Period :
WTI Technical Analysis Chart | 4-Traders
Technical analysis trends WTI
Short TermMid-TermLong Term